Sabre — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter revenue totaled $738 million, a 3% increase from $715 million in Q3 2025.
• Operating income was $109 million, up 17% from $94 million in Q3 2025, with an operating margin of 14.8% compared to 13.1% in the prior year period.
• Net loss attributable to common stockholders was $25 million, compared to net income of $849 million in Q3 2025, driven by a decrease in income from discontinued operations and a loss from continuing operations.
• Adjusted EBITDA was $164 million, up 16% from $141 million in Q3 2025, with a margin of 22.2% versus 19.7%.
• Normalized Adjusted EBITDA was $170 million, up 13% from $150 million in Q3 2025, marking the fifth consecutive quarter of double-digit growth.
• Free Cash Flow was negative $48 million, compared to positive $13 million in Q3 2025; excluding $15 million in refinancing fees and $40 million in accrued interest payments, Free Cash Flow would have been positive.
• Cash used in operating activities was $25 million, compared to $34 million provided in Q3 2025.
• Ended the quarter with a cash balance of $688 million, including $78 million restricted for debt payments in Q4 2026.
• Net debt (total debt less cash and equivalents) was $4.03 billion at September 30, 2026, compared to $3.66 billion in Q3 2025.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 guidance for low-to-mid-single-digit growth in both revenue and air marketplace bookings.
• Raised full-year 2026 Pro Forma Adjusted EBITDA guidance to approximately $610 million, representing 14% year-over-year growth.
• Raised full-year 2026 Free Cash Flow guidance to approximately negative $50 million.
• Management expects to generate positive free cash flow in 2027.
• Full-year 2026 Pro Forma Adjusted EBITDA guidance includes an expected net loss from continuing operations of approximately $133 million, adjusted for various non-cash and one-time items including $71 million in stock-based compensation and $494 million in interest expense.

Business Segments and Product Lines:

• Marketplace revenue increased $19 million (3%) to $594 million, driven by a $14 million increase in transaction-based revenue and a $5 million increase in product-based revenue.
• Total Marketplace bookings were 95 million, roughly flat compared to Q3 2025, with an average booking fee of $6.24, up approximately 3%.
• Airline Technology revenue increased $5 million (3%) to $144 million, driven by volume growth and other revenue increases.
• Hotel-related revenue grew 14% in the third quarter, reflecting momentum in the lodging and media business.
• Secured Kenya Airways as a new Airline Technology customer to modernize its core reservations and retailing platform.

Market and Competitive Landscape:

• Total bookings (net of cancellations) were 95 million, flat year-over-year.
• Air bookings were 79.4 million, down 1% from Q3 2025.
• Lodging and other bookings were 15.7 million, up 8% from Q3 2025.
• Passengers boarded increased 2% to 185.6 million.

Risks and Challenges:

• Forward-looking statements cite risks including geopolitical events, fuel prices, technological advancements, and dependency on global travel transaction volumes.
• Risks include exposure to pricing pressure from travel suppliers, system integrity, security incidents, and the ability to recruit and retain employees.
• Significant indebtedness and the ability to refinance debt remain key risks, alongside potential increases in interest rates.
• Results were impacted by increased interest expense, net, and a decrease in the benefit for income taxes.

Management Commentary and Tone:

• CEO Kurt Ekert stated the company delivered strong results reflecting continued strategy execution and growing momentum.
• Management highlighted expanded profitability driven by consistent revenue growth and disciplined cost management.
• Ekert expressed confidence in achieving increased full-year guidance and generating positive free cash flow in 2027 to drive long-term shareholder value.

Other Key Points:

• Completed a successful debt refinancing at a lower interest rate, extending certain maturities to 2032 with no large maturities until Q3 2029.
• Sold the Hospitality Solutions business to an affiliate of TPG in July 2025, with results presented as discontinued operations.
• Sabre will host its 2026 Investor Day on November 17, 2026, to review strategy, growth opportunities, and the role of AI in the travel ecosystem.
• Capitalized expenditures totaled $23 million in Q3 2026, compared to $20 million in Q3 2025.
• The company reported a loss from continuing operations of $26 million, compared to income of $48 million in the prior year period.